The impact of board characteristics on corporate social responsibility performance of companies: Evidence from emerging markets

The board characteristics have important impacts on corporate social responsibility (CSR) performance of companies, particularly in emerging markets. This study investigates the effects of five board attributes, i.e. board independence, gender diversity, cultural diversity, board activity, board member' compensation, on the CSR performance of 1,191 publicly listed non-financial companies operating in 23 emerging countries over the period 2010-2019. We use a variety of ESG performance scores derived from Thomson Reuters Eikon database to measure the CSR and we employed panel regression models to conduct the analysis. The results show that the greater presence of independent board members and women on boards are significantly and positively associated with CSR performance and decrease ESG controversies. The findings also provide evidence that board member's compensation has a positive and significant impact on CSR performance. Thus, company management in emerging countries should be more conscious in structuring their corporate boards to enhance sustainability performance for the long-term success in improving their reputation and meeting the expectations of stakeholders. Keywords: Corporate Social Responsibility; Emerging Markets; Environmental, Social and Governance Scores; Gender Diversity; Independent Board Membership